Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.54	0.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.5%	10.3%

Tax rate	0.3%	0.6%
Debt/Equity ratio	0.01	0.01
Cost of debt	7.0%	26.8%

After-tax WACC	7.5%	10.6%


Selected WACC	9.0%

S&FCAP.KL WACC - Detailed calculations of Beta

		Debt/Equity		Unlevered
Peers	Company Name	ratio	Beta	beta

S&FCAP.KL	S & F Capital Bhd	0.01	1.94	1.91
ACME.KL	ACME Holdings Bhd	0.18	0.56	0.47
ACOSTEC.KL	Acoustech Bhd	0.23	0.73	0.59
AOF.SI	Amplefield Ltd	0.1	-0.42	-0.38
BERTAM.KL	Bertam Alliance Bhd	0.11	-0.55	-0.49
DOLMITE.KL	Dolomite Corp Bhd	22.59	1.77	0.08
GLBHD.KL	Golden Land Bhd	3.45	0.16	0.04
LBICAP.KL	Lbi Capital Bhd	0.19	0.78	0.66
MJPERAK.KL	Majuperak Holdings Bhd	0.37	0.92	0.67
MUH.KL	Multi-Usage Holdings Bhd	0.01	0.53	0.53

	Low	High

Unlevered beta	0.31	0.55
Relevered beta	0.31	0.57
Adjusted relevered beta	0.54	0.71

S&FCAP.KL's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for S&FCAP.KL:

cost_of_equity (8.90%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.54) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.